About IDCLevels of economic activity in South Africa’s rural areas, underdeveloped provinces and previous townships are relatively low and unemployment is high, due largely to investor concerns and risk perceptions. The IDC in co-operation with other stakeholders, focuses on improving business confidence in these areas and creating opportunities for investment, while strengthening risk management controls. Co-operation agreements with various regional development institutions are in place and we are collaborating with other development institutions in our efforts to leverage external resources, benchmark our activities and widen our networks to extend the reach and presence of the IDC, both locally and internationally.
Our mandate
The Agency Development Support (ADS) department is headed by Stuart Bartlett. We are tasked with advancing and leveraging the development and job creation potential inherent in various geographic areas, particularly those falling outside the industrialised centres, via the establishment of development agencies.
The primary objectives of these agencies are:
- To promote and develop economic potential on a local and/or regional basis by building on the unique competitive strengths of each region’s economy and assets;
- To leverage public and private resources for development opportunities;
- To foster the innovative thinking and entrepreneurial activity which support and drive economic growth; and
- To manage the spatial organisation of the area in a socially efficient manner, through the use of public land and targeted private projects in particular.
Our focus
We are responsible for the establishment of public agencies, linked to local or provincial government, charged with specific development targets, including empowerment, SME creation and social benefits within various spatially (local and regional) defined areas throughout South Africa.
Our achievements
To date we have established 20 development agencies with IDC funding, of which some have already started delivering projects. The IDC is now looking to pilot the establishment of township development agencies and initiatives according to the Urban Regeneration Development Plans of the various municipalities. These agencies include the following:
- The Nkonkobe Development Agency in the Eastern Cape, which has been instrumental in initiating and facilitating the revival of the Kat River Citrus Project.
- The Blue Crane Development Agency, which facilitated the expansion of a flower project for export purposes and the establishment of a new airport in Somerset East as well as the assembly of an ultra-light aircraft project.
- Enterprise Ilembe in KwaZulu-Natal assisted with the facilitation of an aquaculture project at Amatikulu Fishers, which has attracted an amount of R36 million from the KwaZulu-Natal Growth Fund, and also assisted with the identification of nodal points for industrial estates in the Ndwedwe local municipality area of jurisdiction, including a processing facility for small commercial farmers.
Enterprise Ilembe has also delivered a local community chilli project and secured an international market to which it is already supplying.
- Hibiscus Coast Development Agency will facilitate urban renewal programmes and beachfront master plans for the major towns along the south coast of KwaZulu-Natal, in conjunction with the Hibiscus Coast Municipality.
- The Mandela Bay Development Agency collaborated in the key Strategic Spatial Implementation Framework or master plan developed to facilitate the identification of capital projects that could serve as a catalyst for private sector development. This included the Freedom Statue, which represents the fight for freedom to be built in Port Elizabeth. It will also include a museum and a display area for artists.
- The Northern Cape Development Agency (NCEDA), which has various projects ready for implementation and financing, including Mystic River Win Trust in Kakamas, Riemvasmaak Community, the Kalahari Kid Goad Project, Goodhouse Paprika Project and the Desert Raisins Project.
In addition, the PMR Africa (Pty) Limited Golden Arrow Award was bestowed on NCEDA in recognition of the agency’s contribution to economic development in the province.
We have signed Memoranda of Understanding (MOUs) and various other formal agreements with individual African DFIs, including the:
- Banque de Development du Mali
- National Development Corporation of Lesotho
- Namibian Development Bank
- Ithala Development Finance Corporation in KwaZulu-Natal
We have established closer co-operation ties with the:
- Free State Development Corporation
- Mpumalanga Economic Development Agency
- Northern Cape Economic Development Agency
- Limpopo Economic Development Enterprise
- North West Development Corporation
We have established relationships and shared information with other international DFIs, namely Brazil’s Banco Nacional de Desenvolvimento Econômico e Social and the China Development Bank.
Financial options
Donor funding is provided to establish the development agency, to conduct feasibility studies and to assist with the implementation of these projects.
Who should apply for finance
Funding is provided to local, district or, in exceptional cases, to provincial government for the establishment of a development agency.
How to apply for finance
Agency development phases |
Objectives |
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Phase1: Pre-funding phase |
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Phase 2: Pre-establishment phase: Funding capped at R800 000 |
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Phase 3: Establishment phase: funding capped at R2, 5 million |
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Phase 4: Operational Phase: funding capped at R5 million pa for three years |
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Phase 5: Exit phase |
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Who to contact
For more information on the Agency Development and Support (ADS) Strategic Business Unit, please click here to contact us, or call us on +27 11 269 3472. Alternatively, email our call centre at callcentre@idc.co.za.
